CLIENT NEWSLETTER – AUTUMN 2019

In each article below we have given a short summary of the topic so if you would like to read more please click on the link to our website for the full article and newsletter.

 

WOW, We are nearly at the end of another financial year. 

We have put together some things that you may need to consider before 31 March, on 31 March and after 31 March.

If you have any queries about this, please contact us.

Click here to read more

 

2019 Client Annual Checklists

These have now been published and can be found on our website under the tab "Financial Resources" or by following this link .

 

7 April 2019 Terminal Tax is coming up fast!

This is a reminder that you may have a 7 April 2019 Terminal Tax payment due. 

If you have Terminal Tax payable you should have received an email or snail mail IRD reminder letter from us by now.

If you haven't received a reminder it could be because you don't have an amount payable or you may have paid the Terminal Tax early.

Please contact us as soon as possible if you think you may have a payment due or are unsure because missing your Terminal Tax payment will result in penalties and interest from the IRD.

If cashflow is tight, we have an option. Through Tax Traders, our tax pooling partner, we can defer your terminal tax payment until the 19th of June 2019, from rates as low as 4.65%.

 

GST and Land Sales

In 2011 the GST Act was amended to prescribe that a supply of land between two GST registered parties was subject to a rate of 0% if the land was to be used by the purchaser to make taxable supplies and not as a principal place of residence. Given the change reduced the GST rate to 0% it is fair to assume it should have simplified how GST applies, i.e. there wouldn't be any. However, in practice the change continues to cause problems both from a contractual and technical perspective......Click here to read more

 

When is a gift not a donation?

If an individual pays "…a monetary gift of $5 or more…" to a charity they are able to claim 1/3rd of it back from Inland Revenue (IRD). Prior to 1 April 2008, individuals could only claim donations of up to $1,890, i.e. a refund of $630. The coalition Government at the time removed this limit and increased the threshold to the amount of taxable income, to incentivise individuals to give charitably. For the average New Zealander, limiting donation claims to the amount of a person's taxable income is of no consequence. However, some high net worth individuals make donations that exceed........Click here to read more....

 

 

GST on low value imported goods


GST is intended to be a broad-based tax applying to goods and services consumed in NZ, however under the current system not all goods and services are captured. Specifically, GST is not currently collected on imported goods worth $400 or less. Historically, it was thought that the administrative cost of collection would outweigh the tax revenue collected, however the import market has grown giving rise to increasing concern NZ suppliers are disadvantaged in comparison to offshore suppliers.......Click here to read more...


You Versus your Trust


It is common from a layman's perspective to not appreciate the relevance of treating separate legal entities as separate. Where expenditure is incurred to derive income, it is typically deductible for income tax purposes to the person that derived the income. Documentary evidence should be held that reflects this connection to ensure the expenditure comprises an allowable deduction. The High Court recently considered this issue in the decision of Wong v Commissioner of Inland Revenue (2018). In Wong v CIR, the taxpayer was an accountant by profession. He derived income........ Click here to read more...


****************************************************************************************************************************

Please note: The above E-newsletter notes and the related articles on our website are of a general nature and therefore we urge clients who may be affected by these changes to contact us to discuss your specific circumstances before making any changes or drawing any conclusions.

If you do not wish to receive these E-newsletters please use the unsubscribe option below.




Get in contact

  • Takapuna Office

    Ground Floor, Takapuna Finance Centre
    159 Hurstmere Road
    P O Box 331 626
    Takapuna, Auckland

    Phone +64 9 414 4050
    Fax +64 9 447 1645
    Make appointment
    Get Directions